A limited-liability company is
A) taxed like a corporation.
B) taxed like a partnership.
C) similar to a cooperative.
D) always used to organize charitable organizations.
E) the result of a horizontal merger.

Question

Quizplus · Accepted Answer

A limited-liability company (LLC) is a business structure that combines the benefits of a partnership and a corporation. It offers limited liability protection to its owners, but it is not taxed as a separate entity like a corporation. Instead, the profits and losses of an LLC pass through to its owners and are taxed on their individual tax returns, similar to a partnership.

A Limited-Liability Company Is